Having motor insurance is a legal requirement in India. A car insurance policy ensures damage protection against damage to your vehicle and the third party. With ever-increasing incidents of on-road accidents in the country and strict government regulations, it is compulsory to buy motor insurance in India.
It doesn’t matter if you are 20-year old who recently learned driving or a motor enthusiast with a collection of cars, there is are motor insurance policies for everyone.
Following is a guide to find an insurance policy that suits your needs.
1) Third party insurance:
This is the minimum legal requirement of motor insurance policy. The Motor Vehicles Act 1988 has made it mandatory for all car owners to have this insurance, failure to do so can cause penalties. The coverage offered by this motor vehicle insurance plan includes protection to a third party for events such as injuries/death and property damage caused in an accident involving the insured vehicle. However, the third-party liability insurance policy does not offer own-damage cover, i.e., coverage for the insured vehicle or the owner-driver.
2) Comprehensive motor insurance:
The plan provides exhaustive insurance protection and is often referred to as a package policy. It encompasses both third-party liability coverage and own-damage cover. Details are as follows:
Own damage cover: You can claim the insurance during the following events:
• Personal accident cover including driver/owner
• Damages caused by natural disasters, such as earthquakes, floods, hurricanes, etc.
• Damages from man-made disasters such as strikes, riots, vandalism, etc.
• Theft of the insured vehicle
Third party liability: This motor insurance policy protects the policyholder from legal responsibilities to a third party from accidental injuries/death or property damage. The maximum amount of coverage under this insurance for injuries/death is unlimited. However, there is a cap of Rs.7.5 lakh on coverage for third-party property damage. The court decides the final claim payout for property damage.
3) Motor vehicle insurance add-ons:
Most motor insurance policies offer add-ons to enhance the coverage of the base policy you choose. Some of the details are as follows:
A. Engine protect cover:
Buying an engine protection cover offers to protect the vehicle from mechanical or electrical damages to the engine.
B. No Claim Bonus (NCB) protect cover:
NCB is the discount on the insurance premium that your insurer offers during the renewal of the policy. NCB benefits can only be availed if no claims were made in the previous year.
C. Roadside assistance cover:
This add-on motor insurance cover offers 24/7 protection to the policyholder from incidents such as flat tyre, fuel depletion, the requirement for expert scrutiny, etc.
It doesn’t matter if you are 20-year old who recently learned driving or a motor enthusiast with a collection of cars, there is are motor insurance policies for everyone.
Following is a guide to find an insurance policy that suits your needs.
1) Third party insurance:
This is the minimum legal requirement of motor insurance policy. The Motor Vehicles Act 1988 has made it mandatory for all car owners to have this insurance, failure to do so can cause penalties. The coverage offered by this motor vehicle insurance plan includes protection to a third party for events such as injuries/death and property damage caused in an accident involving the insured vehicle. However, the third-party liability insurance policy does not offer own-damage cover, i.e., coverage for the insured vehicle or the owner-driver.
2) Comprehensive motor insurance:
The plan provides exhaustive insurance protection and is often referred to as a package policy. It encompasses both third-party liability coverage and own-damage cover. Details are as follows:
Own damage cover: You can claim the insurance during the following events:
• Personal accident cover including driver/owner
• Damages caused by natural disasters, such as earthquakes, floods, hurricanes, etc.
• Damages from man-made disasters such as strikes, riots, vandalism, etc.
• Theft of the insured vehicle
Third party liability: This motor insurance policy protects the policyholder from legal responsibilities to a third party from accidental injuries/death or property damage. The maximum amount of coverage under this insurance for injuries/death is unlimited. However, there is a cap of Rs.7.5 lakh on coverage for third-party property damage. The court decides the final claim payout for property damage.
3) Motor vehicle insurance add-ons:
Most motor insurance policies offer add-ons to enhance the coverage of the base policy you choose. Some of the details are as follows:
A. Engine protect cover:
Buying an engine protection cover offers to protect the vehicle from mechanical or electrical damages to the engine.
B. No Claim Bonus (NCB) protect cover:
NCB is the discount on the insurance premium that your insurer offers during the renewal of the policy. NCB benefits can only be availed if no claims were made in the previous year.
C. Roadside assistance cover:
This add-on motor insurance cover offers 24/7 protection to the policyholder from incidents such as flat tyre, fuel depletion, the requirement for expert scrutiny, etc.
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